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By 2020, India will surpass China

“Indian manufacturing sector is now playing much stronger role and by the year 2020 we will be able to take on China in most of the businesses,” said Shekhar Bajaj, Chairman & Managing Director, Bajaj Electricals Ltd. in an interview with Subhajit Roy.
 
Your most preferred business mantra
To lead by example
 
Which entrepreneur do you take inspiration from?
Mr. Narayanmurthy of Infosys Ltd
 
Turning point of your career is….
When I took over as a Chief Executive of Bajaj Electricals Ltd
 
Bajaj Electricals Ltd or BEL for you is……………
Like an extended Family
 
Your perception about the industrial manufacturing sector of India…
Indian manufacturing sector is now playing much stronger role and by the year 2020 we will be able to take on China in most of the businesses.
 
Where do you wish to see the manufacturing sector of this country by 2020?
I expect that the total GDP in the manufacturing sector will contribute more than 25%.
 
What should be the BEL’s manufacturing capacity by then?
BEL’s basic module will be of outsourcing. However, by the year 2020, would have substantial increase in our Galvanizing capacity and hopefully will be manufacturing in a big way i.e. Solar, LED and CFL’s
 
Do you think that Chinese products are threat for the Indian Inc.?
In mass production business like Table Fans, Toys, Clothes etc. Chinese products are really a threat. However, with increase labour cost and appreciation of Yuan the premium ranges of Chinese products are not a threat.  Also because of import tariff and freight, Indian manufacturers will be able to compete against the Chinese products.
 
At present, where does the manufacturing segment of this country stands compare to China? Are Indian manufacturers competent enough to compete with the Chinese counterparts?
In the Hi-tech items and software segments, we are ahead of China. But in the mass production item like Table Fans, Toys, Steam Irons and Microwave, China is more competitive than us. With increase labour cost and the appreciation of Yuan, I am confident by the year 2020 India will be ahead of China in almost every segments of business.
 
What are the actions be taken by Indian Govt. in stopping illegal trading of Chinese products?
Mostly Chinese products of low quality are imported illegally. Therefore if imported goods also have to comply with BIS, BEE certification then these illegally traded Chinese goods will come down.
 
Finally, your tips for the young entrepreneurs
Personally for the young entrepreneurs, I would recommend that they should work for 5/7 years in a good company to understand and learn how business is conducted.  Also in big company one can take certain amount of risk and that experience will help them out when they start their own business.  Also in these 5/7 years they get good exposure and develop lots of contacts.
Finally they should look at the long terms gains and not cut corners, should build up brand equity, good will and establish themselves, so that later in their business they can make profits.

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